House prices in Auckland have returned to normal levels of activity in March with sales numbers increasing and the average and medium prices setting new monthly records, according to Barfoot & Thompson.
“After a quiet two months of trading at the start of the year, the market lifted in March with activity returning to something like the normal pattern and increased," said managing director, Peter Thompson.
“This upturn was always on the cards after the quiet January-February period.
The average sales price reached $968,570 for March, an increase over the average price for the previous three months of 4.8% and an increase over February of 2.5%.
“The median sales price at $900,000 showed a higher increase over the previous three months of 7.7%. The monthly increase was 9.8%. The March rise in activity can partly be attributed to the high level of choice available.
“During the last quarter of 2016 the rate at which Auckland house prices were increasing slowed markedly, and this situation has continued into the first quarter of this year.
“Traditionally March is the high point for prices in the first half of the year. Vendors that accept the market is changing and that there is greater choice available are the ones most likely to achieve a successful sales outcome in coming months.”
The latest monthly QV house price index was recently released and indicates the overall figure for the Auckland region has decreased slightly by 0.2% over the past three months.
QV National Spokesperson Andrea Rush said, “Values in parts of Auckland, Hamilton and Christchurch are still seeing a slight downward trend, but values are stabilising and continuing to rise in other parts of these main centres as well.
“This means the downward trend and dampening in these markets seen since the latest round of LVR restriction may be shallower than expected.
“It’s possible we may see values start to rise in these main centres in coming months given that the market is still being driven by a high number of sales to investors, record high net migration, relatively low interest rates, a lack of supply and fewer taxes on property investment than many other countries.”